Thailand: An economic success story

Thailand’s economic development can be considered one of the most significant success stories in Southeast Asia. Over the past 30 years, the Thai economy has experienced continuous growth, which has contributed to a decline in the poverty rate by over 55%. Although economic growth has slowed slightly in recent years, forecasts for the “Land of Smiles” remain positive. The IMF forecasts strong growth for the Thai economy after recovering from the aftermath of the COVID-19 pandemic.  

Thailand’s economy  

Thailand is a true tourism hotspot. Thai hospitality and beautiful landscapes have helped the country to rank among the top holiday destinations in recent years. The tourism sector accounts for about 15% of the country’s gross domestic product, with a good one in six people working in the tourism sector. However, other industries also play a key role: agriculture contributes over 8% to Thailand’s GDP, while manufacturing contributes a substantial 35%.    

For several years, Thailand has been pursuing a new economic model: Thailand 4.0. Using German economic development as a model, this model has been developed to increase the country’s prosperity, social well-being and sustainability. Digitalisation and the development of “smart cities” are cornerstones of the plan, which aims to foster innovation and move Thailand from a middle-income to a high-income country.  

COVID-19 in Thailand   

As in countries around the world, Thailand’s population and economy have been significantly affected by the COVID-19 pandemic. Since the beginning of 2020, the novel coronavirus has been detected in more than 3,600 people in the Southeast Asian country, and 59 people have died due to illness with Covid-19.    

The country’s gross domestic product is expected to drop by 6.7% in 2020 as tourism and exports of goods are hit particularly hard by the pandemic. Nevertheless, the country is forecast to have a strong economic recovery. To cushion the impact of the pandemic on the economy, the Thai government has agreed on a comprehensive financial package worth over 400 billion baht (about 100 million euros). Source: https://home.kpmg/xx/en/home/insights/2020/04/thailand-government-and-institution-measures-in-response-to-covid.html  

For more information on how crowdinvestors at ecoligo will be protected from the impact of COVID-19, click here.  

Thailand’s energy consumption  

As Thailand’s economy grows, so does its electricity demand. The country is a leader in the region in terms of solar power use and is ideally suited for the generation of affordable solar power due to its high annual solar irradiation and strong economy. If you are interested, you can find out more about energy in Thailand here.   

ecoligo is celebrating its entry into the Thai market with a 773 kWp solar plant that will benefit the manufacturing company Xcellent. By using the plant, the company will be able to save around 591 tonnes of CO₂ annually and further expand Thailand’s pioneering position in the use of clean, renewable energy.